MARLBOROUGH - Phio Pharmaceuticals Corp. (NASDAQ:PHIO), a biotech firm in the clinical stage, has announced the termination of its share purchase agreement with Triton Funds LP. The now-voided deal previously allowed Triton the option to acquire up to 18.8% of Phio's common stock.
Phio Pharmaceuticals specializes in developing treatments in the field of immuno-oncology. Their proprietary INTASYL® siRNA gene silencing technology aims to enhance the ability of immune cells to destroy cancer cells. INTASYL is unique in that it is a self-delivering RNAi technology targeting specific proteins that impede the body's cancer-fighting capabilities, without necessitating complex formulations or delivery systems.
The termination of the agreement with Triton Funds, a potential significant investor, was disclosed today, but no details were provided regarding the reason for the termination or any conditions related to it.
The agreement's end could have implications for Phio's capital structure and funding efforts, although the company has not released any further information on its future financing plans.
Investors in biotechnology stocks often monitor such developments closely, as they can affect a company's financial stability and its ability to continue funding critical research and development activities. Phio's focus on immuno-oncology places it within a highly competitive and rapidly evolving sector, where new therapies can potentially transform cancer treatment.
Phio Pharmaceuticals has not commented beyond the announcement of the termination, and representatives from Triton Funds LP have not issued a statement regarding the matter. The company's website offers additional information about their technology and ongoing research initiatives.
This news is based on a press release statement and does not reflect any additional insights or analysis.
"In other recent news, Phio Pharmaceuticals has made significant advancements in its cancer research, including the progression to the next dose concentration in its Phase 1b clinical trial of PH-762.
This development follows positive safety data from the initial cohort, with no dose-limiting toxicities or adverse events reported. The trial aims to evaluate the safety and efficacy of PH-762, a part of Phio's INTASYL siRNA gene silencing technology, when administered directly into tumors.
Simultaneously, Phio secured a South Korean patent for its INTASYL RXI-185 compound, targeting skin aging and disorders. The patented compound aims to improve skin conditions by slowing the progression of skin thickening, elasticity loss, and wrinkle formation, particularly those related to photo-aging.
Moreover, Phio Pharmaceuticals has secured an investment from TRITON Funds, resulting in the purchase of approximately 18.8% of its common shares. This transaction is anticipated to yield gross proceeds of up to $621,000 for Phio, further bolstering the company's financial footing.
Lastly, Phio has presented new preclinical data on its INTASYL Compound PH-905 at the 10th Immunotherapy of Cancer Conference in Munich, Germany, demonstrating its potential to enhance the effectiveness of natural killer cells in fighting cancer. These developments are part of recent progress in Phio's ongoing endeavors."
InvestingPro Insights
Phio Pharmaceuticals Corp. (NASDAQ:PHIO), despite its recent challenges with the termination of the Triton Funds LP agreement, holds a few notable financial metrics and analyst insights. According to InvestingPro data, Phio has a market capitalization of just $2.67 million, reflecting the small size of the company within the biotech sector. The company's price/book ratio as of the last twelve months leading up to Q1 2024 stands at 0.48, suggesting that the stock may be undervalued relative to its assets, which could attract value investors looking for potential bargains in the market.
On the operational front, Phio has been grappling with significant losses, as evidenced by an operating income of approximately -$9.23 million over the same period. The company's gross profit also reflects challenges, with a reported -$5.35 million in the last twelve months leading up to Q1 2024. These figures are critical for investors to consider, as they indicate the company's current financial health and its ability to sustain operations without additional financing.
InvestingPro Tips for Phio suggest mixed signals for investors. While the company holds more cash than debt, which is a positive sign for its balance sheet, it is also quickly burning through cash, which raises concerns about long-term sustainability. Moreover, the stock has experienced a substantial decline over the last week, with a -16.06% total return, and has fared poorly over the last month and year, with total returns of -19.33% and -80.58%, respectively. This performance may be indicative of investor sentiment and market conditions affecting the stock.
For those interested in a deeper dive into Phio Pharmaceuticals' financials and future prospects, InvestingPro offers additional insights. There are 15 more InvestingPro Tips available, which could provide valuable context and guidance for making informed investment decisions. To explore these tips, visit https://www.investing.com/pro/PHIO and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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